ONE Gas Inc (OGS) Q3 2024 Earnings Call Highlights: Strategic Rate Settlements and EPS Guidance ...

GuruFocus.com11-07

Earnings Per Share (EPS) Guidance: Revised to $3.85 to $3.95, 5 higher at the midpoint than original guidance. Capital Expenditures: Expected to be $750 million for the year. Net Income: $19.3 million...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nONE Gas Inc (OGS) Q3 2024 Earnings Call Highlights: Strategic Rate Settlements and EPS Guidance ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 03:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/one-gas-inc-ogs-q3-190037950.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Earnings Per Share (EPS) Guidance: Revised to $3.85 to $3.95, 5 higher at the midpoint than original guidance.\nCapital Expenditures: Expected to be $750 million for the year.\nNet Income: $19.3 million...</p>\n\n<a href=\"https://finance.yahoo.com/news/one-gas-inc-ogs-q3-190037950.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OGS","symbol_name":"ONE Gas Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/one-gas-inc-ogs-q3-190037950.html","article_id":"2481937544","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/fey4qOtyMkNv_k8AfKyoNg--~B/aD0yNTA7dz0yNTA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/8c00938b0ba6ce815767217c2b7e016e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481937544","pubTimestamp":1730919637,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Earnings Per Share  Guidance: Revised to $3.85 to $3.95, 5 higher at the midpoint than original guidance.Capital Expenditures: Expected to be $750 million for the year.Net Income: $19.3 million or 34 per diluted share for the third quarter, compared to $25.2 million or 45 in the same period last year.Revenue from New Rates: $17.5 million in the third quarter.Interest Expense Increase: $11.5 million increase in interest expense, excluding KGSS.Operations and Maintenance (O&M) Expenses: Year-to-date increase of about 5% compared to 2023.Dividend: 66 per share, unchanged from the prior quarter.Kansas Rate Case Settlement: Net increase of $35 million, effective November 1st.Texas Rate Case Settlement: $19.3 million rate increase, 9.7% rate of return on equity, pending final commission approval.Senior Notes Issuance: Additional $250 million issued at an effective rate of 4.87%, aggregating to $550 million due April 2029.Adjusted CFO to Debt Ratio: Projected to end the year above 19%.GuruFoc","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"OGS":"ONE Gas Inc"},"translate_title":"ONE Gas Inc(OGS)2024年第三季度收益看涨期权亮点：战略利率结算和每股收益指引……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OGS":1},"content_text":"Earnings Per Share (EPS) Guidance: Revised to $3.85 to $3.95, 5 higher at the midpoint than original guidance.\nCapital Expenditures: Expected to be $750 million for the year.\nNet Income: $19.3 million or 34 per diluted share for the third quarter, compared to $25.2 million or 45 in the same period last year.\nRevenue from New Rates: $17.5 million in the third quarter.\nInterest Expense Increase: $11.5 million increase in interest expense, excluding KGSS.\nOperations and Maintenance (O&M) Expenses: Year-to-date increase of about 5% compared to 2023.\nDividend: 66 per share, unchanged from the prior quarter.\nKansas Rate Case Settlement: Net increase of $35 million, effective November 1st.\nTexas Rate Case Settlement: $19.3 million rate increase, 9.7% rate of return on equity, pending final commission approval.\nSenior Notes Issuance: Additional $250 million issued at an effective rate of 4.87%, aggregating to $550 million due April 2029.\nAdjusted CFO to Debt Ratio: Projected to end the year above 19%.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with OGS.\n\nRelease Date: November 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nONE Gas Inc (NYSE:OGS) delivered quarterly results in line with expectations, benefiting from company-wide efforts and constructive regulatory outcomes.\nThe company raised and narrowed its EPS guidance for 2024 to a range of $3.85 to $3.95, reflecting a 5-cent increase at the midpoint.\nSuccessful regulatory settlements in Kansas and Texas allow ONE Gas Inc (NYSE:OGS) to recoup investments and earn a fair rate of return.\nThe company benefited from a favorable interest rate environment, particularly from the Fed's 50 basis point rate cut in September.\nOperational efficiencies and cost management initiatives have led to a moderation in O&M expenses, with a year-to-date increase of just 5%.\n\n Negative Points \n\nNet income for the third quarter decreased to $19.3 million or 34 cents per diluted share, compared to $25.2 million or 45 cents in the same period last year.\nInterest expenses increased by $11.5 million, primarily due to refinancing impacts experienced in the first quarter.\nOperations and maintenance expenses were higher compared to the previous year, mainly due to increased labor-related costs.\nThe company faces ongoing concerns about the US election, US deficit, and treasury market dynamics, which have caused longer-term rates to rise.\nCustomer growth is affected by higher mortgage rates, impacting home buyers and builders, leading to slower activity in new meter installations.\n\n Q & A Highlights \nQ: Can you provide an update on the timing of your 2025 guidance? A: Sid McAnnally, President and CEO, stated that ONE Gas plans to issue guidance before the December utility week meetings, maintaining the same cadence as previous years to serve both the company and the investment community well.\nQ: Should we expect a declining trajectory in O&M expenses moving forward? A: Christopher P. Sighinolfi, CFO, confirmed that a declining trajectory in O&M expenses is expected. The company has been successful in moderating costs and anticipates further moderation as they move forward.\nQ: Are there any planned rate filings in Oklahoma or Kansas? A: Curtis Dinan, COO, explained that in Oklahoma, a full rate case is required by June 30, 2027, with interim PBR filings each year until then. In Kansas, they have just completed a rate case and will continue with annual GSRS filings to capture capital expenditures.\nQ: Can you discuss the customer growth trends and expectations? A: Curtis Dinan noted that while higher mortgage rates have slowed activity, there has been a positive pickup in housing permits. This suggests a potential recovery in customer growth, although not a rapid acceleration.\nQ: What is the current balance between commercial paper and long-term debt, and what are the future plans? A: Christopher P. Sighinolfi stated that the company uses commercial paper for investments not yet in authorized rate base. They plan to settle equity forwards at year-end to reduce commercial paper balance, satisfying long-term financing needs with retained earnings and long-term debt.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481937544"}